Balkh Sher Marri’s name rejected

ISLAMABAD: The Federal Cabinet has rejected the name of Mir Balkh Sher Marri as Independent Director of Saindak Metals Limited (SML), official sources told Business Recorder.

Saindak Metals Limited (SML) is a 100% Government of Pakistan (GoP)-owned enterprise working under the administrative control of the Petroleum Division. It deals in the exploration, exploitation and development of non-ferrous minerals and extraction of base metals. It was incorporated under the Companies Act, 2017, which provides that the Federal Government may constitute a Board of Directors to control, manage and direct the affairs of the company.

As per the Company's Articles of Association, the number of Directors on the Board of SML shall not be less than seven or more than fifteen. According to Rule 3(1) of the Public Sector Companies (Corporate Governance) Rules 2013, the Board shall consist of executive and non-executive Directors, including independent Directors and those representing minority interests with the requisite range of skills, competence, knowledge, experience and approach so that the Board as a group includes core competencies and diversity considered relevant in the context of the Public Sector Company's operations. Furthermore, as per Rule 3(2) of the Rules, the Board shall have at least one-third of its total members as independent Directors.

Keeping in view the rules and regulations of the company Petroleum Division proposed the following composition of the BoDs of SML for a period of three years, under the prescribed guidelines, rules and regulations and Corporate Governance criteria: (i) Dr. Rehanul Haq Siddiqui (Chairman from Balochistan); (ii) Mir Balkh Sher Marri (independent director); (iii) Jahanzaib Durrani (independent director); (iv) MD PMDC, Lt. Col. Khalid Rafique Shah (retd) (independent directors Punjab); (v) Joint Secretary (I&JV), Petroleum Division (ex-officio director; (vi) Director General (Minerals), Petroleum Division (ex-officio director); (vii) Director General, 'Geological Survey' of Pakistan, Petroleum Division (ex-officio director); (viii) Secretary, Mines and Minerals Department, Balochistan (ex-officio director); (ix) Representative of Finance Ministry (ex-officio director) and; (x) Additional Chief Secretary, Balochistan (ex-officio director).

On November 10, 2020, during a discussion, a member enquired as to whether under the Companies Act, 2107, it was mandatory to have a woman Director on the Board as well. Petroleum Division clarified that the requirement was only for the listed companies and SML being a non-listed company, the condition did not apply. Some of the members questioned the antecedents of Mir Balakh Sher Marri, being proposed against a vacant slot of Independent Director.

The Cabinet further directed Petroleum Division to submit a panel of candidates for appointment of Independent Director in lieu of Mir Balakh Sher Marri as proposed in the summary.—MUSHTAQ GHUMMAN